The new head of Goldcorp Inc. says the world’s largest gold company by market value plans to look beyond the Americas to Africa and Europe for opportunities to expand.
Goldcorp has counted its relatively small global footprint as a strength. But as the Vancouver-based gold producer finds fewer opportunities close to home, it’s time to cast a wider net, David Garofalo, the company’s incoming chief executive officer, said in an interview in Bloomberg’s Toronto office.
“If there’s anybody who’s positioned to take on a little more political risk, it’s Goldcorp, given its premium market cap relative to our competitors,” Garofalo, 50, said on Monday. “There are some jurisdictions within Africa that might make some sense and Europe, Eastern Europe in particular.”
Currently all of the company’s operations are in the Americas, including Canada, Mexico and Argentina. It’s a strategy Goldcorp Chairman Ian Telfer has often cited as key to simplifying operations and minimizing risk.
Yet opportunities to find new assets in the America’s that meet Goldcorp’s ideal criteria — low-cost mines capable of producing half a million ounces of gold a year — are slim, Garofalo said.
The company has no intention of wading into high-risk political zones, such as Russia or China but Garofalo repeatedly mentioned Africa as an attractive possibility.
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